As a fixed item on the payroll, everyone must be familiar with the housing provident fund, which is a long-term housing fund paid by in-service employees. Many consumers who have a CPF loan to buy a house, but they don't know how to make full use of this fund, "Can the CPF be withdrawn directly to buy a house?", "Can the CPF be used for investment?", "Can the CPF be used for second-hand housing?", ...... And so on. How to make good use of the housing provident fund? This reporter interviewed the relevant business departments of the Linxia Prefecture Provident Fund Center to give guidance on this.
Provident fund financial management
In the face of the changes in the government's provident fund policy and the temptation of all kinds of "cost-effective", the majority of investors should fully understand all aspects of the provident fund, use it rationally, and plan reasonably.
Use the provident fund to repay the monthly payment
There are two ways to repay the CPF loan: the lump sum repayment method and the monthly repayment method. The one-time repayment method means that after the balance of the loan is repaid at one time with the housing provident fund withdrawn when buying a house, the borrower recalculates the monthly repayment amount according to the remaining loan principal and the remaining repayment period after the loan repayment, and continues to repay the loan on a monthly basis. This type of repayment reduces the repayment interest in the form of a reduction in the principal amount of the loan. The monthly repayment method is a method of transferring the amount of loan principal and interest from the borrower's provident fund account on a monthly basis to repay the principal and interest of the loan in the current month. This method of offsetting the loan does not offset the principal of the loan, so it cannot reduce the total interest of the repayment period, but because it can offset the actual monthly loan repayment amount, it reduces the borrower's repayment pressure to a certain extent and improves the utilization rate of funds.
In fact, the advantages of CPF are even more prominent in second home loans. This is especially affordable for middle-class families who already have some wealth and are looking to buy a second property. Since the down payment ratio of the first and second home loans of the provident fund loan in our state is 20%, but the gap between its interest rate and the interest rate of the commercial loan is obvious, it is more advantageous to use the provident fund to loan the second home.
Withdraw the provident fund to realize the investment
For those who have a high monthly income and are fully able to pay the purchase price of the house in a lump sum, the provident fund is not useless. The relevant policy stipulates: "After buying a house with a one-time payment, you can withdraw your own provident fund and supplementary provident fund within half a year." "In a society that generally prefers liquidity, the truth that cash is king applies not only to financial institutions such as banks, but also to personal investment and financial management. Therefore, buyers may seize another investment opportunity by cashing out their CPF at the right time.
For example, comparing the interest rate of the provident fund with the secondary market book-entry treasury bonds with good liquidity, in view of their current bullish market or relatively high expected rate of return, investors can invest the provident fund in this part of the project with strong cashing ability under the premise of paying attention to various risk prevention. It can also be used for other, more aggressive investments, but you need to weigh the pros and cons carefully and think twice.
Withdraw CPF down payment on mortgage
As a special policy fund, the provident fund can also be used in the form of a down payment for a house. According to the "Relevant Policies or Notices", the notice mentions that when the depositor of the provident fund buys affordable housing or price-limited housing, he can withdraw the provident fund as the down payment for the purchased house with the "Housing Selection Confirmation Form", the certificate of purchase of policy-based housing issued by the developer with the official seal, the "Housing Provident Fund Withdrawal Application" issued by the unit, the housing provident fund card or savings account number and ID card. This can reduce the pressure of a down payment on a home for low- and moderate-income earners.
In addition, the CPF can also be used for home renovation and other expenses, saving on borrowing costs. In view of the relevant policy that "if you decorate, renovate or overhaul your own house, you can withdraw the provident fund with the relevant agreement and invoice", buyers can use the remaining provident fund to renovate their housing in order to improve their housing conditions as soon as possible.
Six questions and six answers for housing provident fund loans
Q1: What are the basic conditions for applying for a housing provident fund personal housing loan?
Answer: The following three conditions must be met at the same time:
(1) Those who have paid in full for 6 consecutive months or more and have made normal contributions;
(2) The credit report is good, and the personal credit report shows that there has been no negative record of "three consecutive six" in the past five years;
(3) Have a long-term stable income.
Q2: How to determine the number of housing provident fund loans?
Answer: It is determined by the family real estate inquiry certificate issued by the real estate management department of Linxia Prefecture.
Q3: How to calculate the loanable amount of the housing provident fund loan and the down payment payable when buying a second-hand house?
A: The loan amount is 80% of the total VAT shown on the transfer invoice, and the down payment is 20%.
Q4: If the loan applicant has used the housing provident fund loan twice, can he still use the provident fund loan again?
Answer: The housing provident fund loan policy stipulates that provident fund loans shall not be granted to depositor families who have used provident fund loans twice or more.
Q5: Are there any requirements for the number of housing units purchased for the provident fund loan?
A: The housing purchased by the borrower must be the first ordinary owner-occupied house or the second improved ordinary owner-occupied house of the family (including the borrower, spouse and minor children). The Housing Provident Fund Loan Policy stipulates that provident fund loans shall not be granted to depositor families who purchase a third or more housing.
Q6: What additional materials do I need to provide to pay the housing provident fund in other urban provident fund centers in China, buy a house in Linxia and apply for a housing provident fund loan?
Answer: In addition to the general loan information, it is also necessary to provide the "Certificate of Deposit and Use of Housing Provident Fund for Employees with Non-local Loans" issued by the Deposit City Provident Fund Center and the provident fund payment statement for at least 6 months or the "Personal Information Form for Housing Provident Fund Business".
Rational use of housing provident fund
【Case】
After graduating in 2017, Xiao Wang applied for a job in a public institution, with a monthly salary of 5,000 yuan, a house worth 600,000 yuan, a down payment of 250,000 yuan, and the remaining money to apply for a loan of 350,000 yuan from the bank, with a monthly repayment amount of about 2,200 yuan. Today, Xiao Wang's housing provident fund account has accumulated a large amount of money.
【Financial Analysis】
Looking at Xiao Wang's financial situation, although he has a monthly salary of 5,000 yuan, it is a little difficult to repay the mortgage of 2,200 yuan per month. However, it is worth noting that Xiao Wang's housing provident fund of more than 1,440 yuan per month can be reasonably planned to maximize the effectiveness of this special fund.
【Financial Plan】
According to Xiao Wang's specific situation, changing the structure of a single bank commercial loan of 350,000 yuan and choosing an appropriate proportion of housing provident fund loans is an effective way to make reasonable use of the housing provident fund.
First of all, analyzing Xiao Wang's personal situation, his career is in a period of growth and rise, the down payment of the purchased house has reached 250,000 yuan, and he still needs funds to get married and have children in a certain period of time in the future, so the combination loan of choosing a provident fund loan and a commercial bank loan is more suitable for his personal financial goals, which not only gives full play to the advantages of low interest rates on provident fund loans, but also takes into account the characteristics of more flexible repayment methods of commercial loans.
Secondly, there are usually two options for the provident fund loan offset method in the portfolio loan, one is a one-time reversal, that is, the balance in the current housing provident fund account will be written off once every year to offset the remaining loan amount. Second, the loan is repaid on a monthly basis, that is, the loan amount to be repaid each month is written off on a monthly basis. Finally, when choosing housing provident fund loans, within the scope permitted by the policy, we should try our best to increase the proportion of provident fund loans, and maximize the advantages of provident fund loan interest rates lower than commercial loans.
At the same time, when using the provident fund and loan to buy a house, it is also necessary to pay attention to the following matters: first, the down payment of the house can be paid by the provident fund; second, the provident fund can be withdrawn after a lump sum payment, but the total amount withdrawn shall not exceed the total price of the property; third, after the provident fund loan is settled, it can still be used again. Fourth, in addition to the purchase of housing, housing provident fund loans can also be used for the construction, renovation, and overhaul of houses.